Fitch revises Schaeffler, IHO-V views downward

Fitch Ratings said it revised the outlook on Schaeffler AG to negative from stable and affirmed the issuer default rating at BBB-. Fitch also revised the outlook on Schaeffler's immediate parent and 75.1% owner, IHO Verwaltungs GmbH (IHO-V) to negative from stable and affirmed its IDR at BB+

“The negative outlook reflects the numerous challenges facing Schaeffler in 2020 and beyond to sustain its profitability and leverage metrics in line with our expectations for the rating. For IHO-V, the negative outlook reflects the increasingly unfavorable market dynamics facing Schaeffler as well as the risk of a further reduction in the dividend paid to IHO-V by Continental AG (BBB+/stable), which could hinder or materially delay required deleveraging for the consolidated group,” said S&P in a press release.

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